It's not a secret that traditional homeownership models are no longer viable for the vast majority of Canadians. With more and more individuals feeling locked out of the housing market and with housing prices rising, many people are left stuck on the rental treadmill. With Key’s innovative co-ownership model, we’re offering a third solution to homeownership, giving you the benefits of owning with the freedoms of renting. Learn more about how Key's model works. Wondering if you should be considering co-ownership? Here are a few situations where co-owning real estate makes sense.

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1. You’re struggling to save for a downpayment

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For the typical first-time Canadian urban home buyer it takes an average of 24 years just to save up for the typical 20% down payment. What's more, the longer you spend saving, the more housing prices seem to increase. Through co-ownership you can start owning years sooner. If you’re considering Key’s model, that initial home equity investment is only 2.5% of the value of your suite, which is around $15K for most--significantly lower than traditional homeownership.

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2. You don’t want to be locked into a mortgage

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With Key’s unique co-ownership model you will never be required to qualify for a mortgage. You can choose to take on a mortgage after the end of the third year, but there is no obligation. This allows you to have more financial flexibility and freedom. For the majority of individuals, their greatest financial obligation is their mortgage debt. Additionally, when tied into a long-term mortgage accessing your home equity when needed can be difficult. With co-ownership, not only are you able to contribute more money into your home equity whenever you please, but once you are ready to move out of your suite after your first year you simply give Key 75 days notice and, based on the value of your suite, you will receive your home equity and appreciation back.

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3. You want a flexible lifestyle or are unsure of your timeline

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When buying real estate it is generally recommended that a buyer stays in their home for at least 5 years before selling, and typically staying in your home for over 10 years will leave you with a larger return on investment. If your timelines are shorter, you could end up losing money or breaking even on your transaction. This can be challenging for those who are unsure of their timeline. Maybe you have intentions to move city’s or are exploring career changes in the short term, or maybe you are happy where you are now but aren’t ready to lay down any roots long term and want to keep your options open. Either way, with traditional homeownership, it becomes significantly more difficult to relocate to a new job or city.

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4. You are self-employed

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Maybe you’re a freelancer, a contract worker or a small business owner. If you fall into any of these categories you likely know that it can be extremely difficult to get approved for a mortgage. Without a stable income, lender’s often see you as a higher risk, making them less likely to provide you with a loan. This problem has been exacerbated over the course of the COVID-19 pandemic, with self-employed applicants subject to increased scrutiny. With co-ownership, like Key’s model, there is no mortgage required, so this struggle is completely nonexistent.

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5. You want to live downtown

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A growing trend over the recent years has been to move further out of the city to find more affordable housing options. If you’re someone that doesn’t want to compromise your location preference and give up all the benefits of city life, then co-ownership is worth considering. At Key, we offer suites in beautiful sought-after central locations, surrounded by an abundance of venues, activities and culture. It’s increasingly hard to get into the market today, which means it’s more important than ever to consider new options for homeownership that allow you to participate in the real estate market on your own terms. You can learn more about how Key compares to traditional homeownership here.

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